ONCAP, the mid-market private equity investment arm of Onex Corp, has closed its sale of Mister Car Wash to U.S. private equity firm Leonard Green & Partners, as previously reported by peHUB Canada. ONCAP received net proceeds of US$423 million from its investment, which represents a gross multiple of capital invested of about 8.1 times and a gross IRR of 36 percent. Onex received net proceeds of US$153 million from the sale. Mister Car Wash is a Tucson, Arizona-based operator of car washes and lube centers in regional markets across the United States.
ONCAP Completes Sale of Mister Car Wash
TORONTO, ONTARIO–(Marketwired – Aug. 21, 2014) – Onex Corporation (“Onex”) (TSX:OCX) announced today that ONCAP II has completed the sale of Car Wash Partners, Inc. (“Mister Car Wash”), the largest independent full-service car wash chain in the U.S., to Leonard Green & Partners.
ONCAP II acquired Mister Car Wash in April 2007 and has worked alongside management to build a larger and more diversified business, growing from 39 locations to more than 130 today. Including prior distributions, ONCAP II has received net proceeds of $423 million compared to its original investment of $52 million. This represents a gross multiple of capital invested of about 8.1 times (7.7 times in CAD) and a gross IRR of 36% (35% in CAD). Onex received net proceeds of $153 million from this sale.
“This is a great outcome for everyone involved,” said Michael Lay, Managing Partner of ONCAP. “The management team has done a terrific job building the leading platform in the car wash space and we are confident they will continue their strong growth trajectory going forward. We wish the team ongoing success and want to thank them for the wonderful partnership we have enjoyed over the past seven years.”
ONCAP is the mid-market private equity platform of Onex. ONCAP, in partnership with operating company management teams, invests in and builds shareholder value in North American small and mid-size companies that are leaders in their defined market niche and possess meaningful growth potential. For more information on ONCAP, visit its website at www.oncap.com.
With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $22 billion of assets under management, including $6 billion of Onex capital, in private equity and credit securities. Onex invests its capital directly and as the largest limited partner in each of its Funds. Onex’ businesses have assets of $31 billion, generate annual revenues of $24 billion and employ approximately 200,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company’s security filings can also be accessed at www.sedar.com.
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